Triangle Energy and Key Petroleum have further extended the cut off date for the sale and purchase agreement to acquire a 50 per cent interest in Key’s production licence L7(R1) and its combined 86.94 per cent interest in exploration permit EP 437.
In January Triangle reported it had entered into an agreement with Key Petroleum for the acquisitions of the production licence and exploration permit.
Completion of the agreement is conditional on usual regulatory approvals, execution of a deed of covenant in respect of the EP 437 JOA, Triangle receiving binding commitments for a capital raising of at least $1,000,000 and, if required, Key obtaining the approval of its shareholders.
During the intervening period the company and Key Petroleum have been working to complete the necessary regulatory requirements in order that the Department of Mines, Industry Regulation and Safety can effect the transfer of Key’s interests in L7 and EP 437 to Triangle.
Due to a number of delays, Key and Triangle have agreed to extend the proposed cut off date for the agreement to January 31, 2022 and Triangle has agreed to make a non-refundable pre-payment of part of the already announced completion payment, of $200,000.
In addition, Triangle has agreed to assume all of Key’s ongoing work program commitments within EP 437, which now requires the acquisition of 20 square kilometres of 3D seismic and the drilling of one well prior to the end of Year 3 of the permit term on May 27, 2022 with a second discretionary well due by the end of the permit term on May 22, 2023.
The terms of the original farmout agreement for L7 are removed, allowing Triangle to acquire a much larger 3D survey across the area, which will also tie into the existing Irwin 3D survey to the south and extend into EP 437 to the west.
Once completed, Triangle will hold a 100 per cent interest in the L7 Mount Horner production licence and a 86.94 per cent interest in the adjacent exploration permit, EP437, on the northern margin of the Dandaragan Trough of the North Perth Basin.